What is the purpose of the FAFSA? To access need-based federal aid, including federal loans To apply to an institute of higher education and access aid from that school To apply for community based scholarships and local bank loans To access loans from your local bank and the federal government

## Step 1<br />The Free Application for Federal Student Aid (FAFSA) is a form that current and prospective college students in the United States can fill out annually to determine their eligibility for financial aid. This aid can be in the form of federal grants, loans, and work-study programs.<br /><br />## Step 2<br />The FAFSA is not used to apply to an institute of higher education. Instead, it is used to determine the amount of financial aid a student is eligible to receive.<br /><br />## Step 3<br />The FAFSA is not used to apply for community-based scholarships and local bank loans. These are typically handled by the individual institutions or banks, not the federal government.<br /><br />## Step 4<br />The FAFSA is not used to access loans from your local bank and the federal government. While the FAFSA can help determine eligibility for federal loans, it is not the only method for accessing these loans.